Investment Rating - The report maintains an "OUTPERFORM" rating for Huadian Power International with a target price of HK4.62 [3][14]. Core Insights - The company's profits have significantly recovered due to a decline in coal prices, achieving a revenue of RMB 117.18 billion in 2023, a year-on-year increase of 9.45%, and a net profit of RMB 4.52 billion compared to RMB 0.1 billion in the previous year [11][14]. - In Q1 2024, the company reported a revenue of RMB 30.95 billion, a decrease of 3.21% year-on-year, primarily due to increased hydropower generation in Hubei, which affected thermal power output. However, net profit rose by 64.21% year-on-year to RMB 1.86 billion, driven by lower coal prices [11][12][14]. - The company has a controlled installed capacity of 58,449.78 MW, with coal-fired power generation accounting for approximately 80% of this capacity [12]. Financial Performance - The company’s revenue projections for 2024-2026 are RMB 124.77 billion, RMB 126.45 billion, and RMB 128.71 billion, respectively, with net profits expected to be RMB 6.05 billion, RMB 7.36 billion, and RMB 8.38 billion [14]. - The report highlights a significant increase in hydropower generation, with a 24.8% year-on-year increase in Q1 2024, while thermal power generation saw a slight decline of 0.5% [12][13]. - Investment income for 2023 was RMB 3.776 billion, down 21.4% year-on-year, but the potential for high growth in new energy investments remains [13][14]. Market Position and Strategy - The company plans to expand its new energy capacity significantly, with Huadian Group aiming to add 75GW of new energy installed capacity during the "14th Five-Year Plan" [13]. - The report indicates that the overall trend of declining coal prices in 2024 is expected to improve thermal power profitability [14].
华电国际电力股份：火电利润持续修复，一季度水电出力显著提升